Export Refunds Reintroduced for Dairy Products

The dairy sector enjoyed an unprecedented price rise in 2007 and the beginning of 2008, however that situation has now been completely reversed. "The severity of the fall in milk prices over recent months has surprised many," said the Commissioner. With increased supply on the world market and reduced demand on the internal market, market prices for dairy products have been forced down close to or even below intervention levels. For the milk producers, this means substantial price decreases.

Additional support for dairy farmers comes in the form of EU intervention - the European Commission purchases surplus produce at a guaranteed price. The next round of such intervention will begin on 1 March and will continue until 31 August, and the annual limit is 30,000 tonnes of butter and 109,000 tonnes of skimmed milk powder.

A spokesperson from the Commission did, however, stress that the latest measures would not mean any return to the milk lakes and butter mountains of the 1980s, when generous EU price support encouraged farmers to overproduce.

The EU still plans to phase out milk quotas by 2015 and to limit market intervention, with a view to scrapping it in the long term.

EPHA Comments

EPHA would like to see CAP increase financial support to promote healthy consumption and production, including an increased availability of fruits and vegetables. This should be accompanied by health promotion efforts to raise awareness of the risks associated with a unhealthy diet. DG Agriculture has taken positive step towards making fruit and vegetables available with its recently-launched School Fruit Scheme, and EPHA would like to see this approach continue. In light of recent developments, however, EPHA is concerned that economic interests may once more be placed ahead of the health interests of the population.

For more information

DG Agriculture